On july 1, gilbert county bought computer equipment for use in the administrative offices of the county. the equipment has an estimated useful life of three years and salvage of $10,000. gilbert county has a 6/30 fiscal year-end. assuming that the county maintains its books and records in a manner that facilitates the preparation of fund financial statements, the $85,000 cost of this equipment would require which of the following entries? a. debit expenditures $85,000; credit cash $85,000. b. debit equipment $85,000; credit cash $85,000. c. debit expenses $85,000; credit cash $85,000. d. no entry in the city’s governmental funds

b. Debit Equipment $85,000; Credit Cash $85,000.

Explanation:

Provided information,

Financial year will end on 30 June each year.

The computer equipment is purchased on 1 July

Cost of equipment = $85,000

Note: At the time of purchase as the equipment is long term, it will be accounted as fixed asset and is a capital expenditure, not a revenue expense to be charged in books of account.

Therefore, entry for recording the purchase of computer equipment shall be:

Equipment A/c Dr.             $85,000

     To Cash A/c                                     $85,000

(Recording purchase of equipment in exchange of cash)

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability